New Iranian Crypto Bill Coming Into Effect, Requiring Miners To Register For Licenses

There is new legislation currently in the process in the Iranian Legislative assembly that if passed, all crypto miners will not operate without government approval and registration.

Regarding the cryptocurrency mining sector, the Iranian government has started creating regulations that will govern the practices. With regard to a report published on the Coindesk website, there is a strong indication that the Iranian government is close to making this bill a reality.

Going by the most recent draft of the bill being driven by the Iranian cabinet, this draft proposal will call for all cryptocurrency miners to get a license. This license is to be renewed annually after the miners have registered with the Iranian government.

Information, the Iranian Government, will Need before Granting the License

Before getting the license, the miners will have to provide the government with some information. This information includes their business practices, the value of the miners’ investments and assets, plus their status of employment. In addition, the government demands to see the lease for the mining space and learn the length of the mining project.

There has been a rise in cases of cryptocurrency being used to finance illegal activities, for instance the drug trade. Other illegal activities that have been highlighted include human trafficking and financing terrorism.

According to the report, it is worthy to note that more Iranians have gotten into the cryptocurrency industry to make a living. This has mainly been caused by international sanctions against Iran, plus a high rate of inflation.

The History of Cryptocurrency Legislation in Iran in the recent past

The good news from this draft bill is that it shows an interest from the Iranian authorities regarding cryptocurrency. Most importantly, it shows that the government is ready to give backing to cryptocurrency miners. It is vital to note that the low electricity rates in Iran have significantly contributed to many people taking up cryptocurrency mining.

In June, the energy ministry in Iran stated that power that fed the country’s cryptocurrency miners would be cut off. This was after the Iranian power grid was hit by a power surge that was connected to cryptocurrency mining. This energy was initially highly subsidized and the government is working on setting up a new pricing arrangement.

After the government initiated these new electricity rates in July, ordinary users were charged $0.05 per kilowatt-hour while cryptocurrency miners had to part with$0.07 per kilowatt-hour. This made it easy for the Iranian authorities to give official permission for cryptocurrency mining as industrial practice.

This was in July but a few days later, the government introduced a new bill that stated that cryptocurrency is not recognized as legal tender. This meant that any domestic financial matters that used cryptocurrencies would not be officially acknowledged. Just last week, the Iranian National Tax Administration accepted that crypto mining income that was collected out of the country was exempted as long as the miners repatriated them.